Delhi High Court

S. 158BD proceedings without recording written satisfaction void. Statement recorded in search cannot form sole basis for s. 158BD addition

Commissioner of Income Tax Vs Late Sh. Raj Pal Bhatia (Delhi High Court)

Income Tax - Section 158BD - Whether recording of satisfaction is mandatory before notice u/s 158BD is issued - Whether statement of one of searched parties can have the sactity of 'books of accounts'. - Revenue's appeals dismissed...

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Dividend on shares held by assessee as stock-in-trade is taxable as Business Income

Commissioner Of Income Tax Vs. Excellent Commercial Enterprises And Investments Ltd. (Delhi High Court)

Swatanter Kumar J.- Before the Income-tax Appellate Tribunal, the Income-tax Officer, Ward-II New Delhi, while preferring an appeal against the order of the Commissioner of Income-tax (Appeals) dated December 1, 1999, relating to the assessing year 1996-97, raised the following issue...

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Though main object is to do business in shares, shares can be held as a capital asset

CIT Vs M/s PNB Finance & Industries Ltd (Delhi High Court)

Whether, only because the assessee can deal in shares as per the memorandum of objects, any transactions undertaken by the assessee for sale or purchase of shares, in the earlier years is to be treated as business transaction, and the gains and loss resulting from the same to be assessed under the head business income and not capital gain...

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Accrual of income must be factual and not merely contractual

Commissioner of Income Tax Vs Ersus M/s Vasisth Chay Vyapar Ltd. (Delhi High Court)

ITAT was right in law and on merits by deleting the additions of income made as interest earned/acquired on the loan advanced to M/s Shaw Wallace by considering the interest as doubtful and unrealizable....

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Merely because assessee had its own ample resources at its disposal, it cannot be denied deduction in respect of interest paid on borrowed funds

CIT Vs. Gautam Motors (Delhi High Court)

Once the three conditions pointed out by the Supreme Court in the judgment of Madhav Prasad Jatia v. CIT [1979] 118 ITR 200 are satisfied, the assessee would be entitled to deductions in respect of the interest and charges paid on the loans; the matter would be different only in a case where after borrowing the funds from the bank, the as...

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Revenue Secretary & CBDT Chairman summoned for turning “deaf ear” to inefficiencies redressal

The Commissioner of Income Tax Vs. Preeti N. Aggarwala (Delhi High Court), ITA No. 456/2007

The department filed an appeal in the High Court and claimed that as the Tribunal’s order was received on a particular date, the appeal was on time. However, the assessee obtained information from the Tribunal under the Right to Information Act and pointed out that the order was served on an earlier date and that the appeal was belated....

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Payment of non-compete fees for acquisition of business is capital expenditure

Tecumseh India Private Limited Vs Addl. Commissioner of Income Tax (ITAT Delhi)

In a recent decision in the case of Tecumseh India Pvt. Ltd. v. ACIT [2010-TIOL-408-ITAT-DEL-SE3], the Special Bench of Delhi Income-tax Appellate Tribunal (the Tribunal) has held that non-compete fees inextricably linked with the acquisition of a business constitute capital expenditure....

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Reopening under section 147 on mechanical basis void even where s. 143(3) assessment not made

Sarthak Securities Vs. ITO (Delhi High Court)

The assessee-company allotted shares to four companies. The allottee companies were active as per the records of the ROC and were allotted PAN and assessed to income-tax. Though the assessee filed a return, no assessment u/s 143(3) was made. The AO s...

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Whether notional interest on interest-free security deposit is includible in ‘house property’ income referred to Full Bench

Commissioner of Income Tax, Delhi III Vs Moni Kumar Subba (Delhi High Court)

The assessee let out property on a rent of Rs. 90,000 per month and also received interest-free security deposit of Rs. 8.58 crores. The property was not subject to the Rent Control Act. The assessee claimed that only the rent could be taken into account for determining the ‘annual value’ of the property and not the notional interest ...

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Non-Residents Not Liable For S. 234B Interest-Delhi High Court

Director of Income Tax Vs M/s. Jacabs Civil Incorporated (Delhi High Court)

S. 234D inserted by the FA 2003 w.e.f. 1.6.2003 is in the nature of a substantive provision and applies only for the AY 2004-05 and onwards and is not retrospective. A provision by which an authority is empowered to levy and collect interest, even if construed as forming part of the machinery provisions, is substantive law for the simple ...

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